Hannah Endrizzi

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SCENARIO 1

• Hannah Endrizzi
• 7th hour

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• 4 Doors
• 4 Wheel Anti-Lock Brake System
• 8 Cylinders
• Air Conditioning
• Alarm System
• Aluminum Wheels
• Am/Fm Stereo
• Auto Climate Control
• Automatic Off Headlights
• Automatic On Headlights
• Automatic Transmission
• Cassette Player
• CD Changer
• Dual Front Air Bags
• Electro chromic Rearview Mirror
• Fog Lamps
• Four Wheel Disc Brakes
• Front Side Air Bag

• Leather Seats
• Leather Wrapped Steering Wheel
• Parking Aid
• Power Locks
• Power Seats
• Power Steering
• Power Windows
• Rear Wheel Drive
• Rear Window Defogger
• Remote Keyless Entry
• Remote Release Trunk
• Sliding Sun Roof
• Steering Wheel Audio Controls
• Sun/Moon Roof
• Tilt Steering Wheel
• Traction Control
• Trunk Access
• Universal Garage Door Opener

USED
AUTOWEB.COM http//www.autoweb.com/
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• 1,192,057.10 This is by far the most expensive
  street legal car available on the market today.
  It is the fastest accelerating car reaching 0-60
  in 2.5 seconds. It claims to be the fastest with
  a top speed of 253 mph.

SUPER CARS, SMART, SWEET AND FAST http//www.thesu
percars.org/top-cars/most-expensive-cars-in-the-wo
rld-top-10-list-2007-2008/
NEW
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NEW
USED
CEFCU https//www.cefcu.com/about/rates.php?tablo
ansvehicle
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In order to buy either the new or the used car,
this is the monthly payment I would have to make
in order to purchase the vehicle on a 5 year loan.
USED CAR NEW CAR
A
B
R
R
R
R
R22,471.26
R 254.10
P Car Value Down Payment
USED CAR P 13990.00 1000 P 12,990.00
NEW CAR P 1192057.10 1000 P 1191057.10
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This is the Amortization table if I was financing
the used car. It shows the first 10 payments I
would make and how much I would still owe on the
vehicle after the payments.
Amount Loan Left (after 10 payments) Original
Loan Amount - Balance Remaining
12,990.00 10,335.91 2,654.09
C
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AMOUNT TO INTEREST
AMOUNT TO PRINCIPAL
BALANCE (REMAINING)
Amount to Interest Previous Balance
remaining x Interest Rate x
Amount to Principal R Amount to Interest
Balance Remaining Previous Balance
Remaining Amount to Principal
Amount to Interest
Amount to Principal 254.10 70.25
Balance Remaining 12990.00 183.85
Amount to Interest 70.25
Amount to Principal 183.85
Balance Remaining 12806.15
These are the calculations for the first payment
in the Amortization table. The first sheet shows
the amount of the monthly payment that goes to
paying for the interest. The second sheet shows
the amount of the monthly payment that goes to
paying off the balance, or the amount that goes
to principal. The last sheet shows how much of
the loan is still remaining and has to be paid.
C
cont.
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This is showing the total amount I would pay in
interest, if I was to buy either the used or the
new car, over the life of the loan I would take
out.
USED CAR NEW CAR
I (n x R) - P I (60)(22,471.26)
1191057.10 I 187,218.50
I (n x R) P I (60)(254.10) 12990.00 I
2,256.00

• n mt (number of compounding periods per year x
  number of years)
• R monthly payment
• P loan amount (see monthly payment sheet for
  calculation)

D
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If I had a limit of only being able to afford a
monthly payment of 300, then I would be able to
afford the used car, the 2002 Jaguar, because the
monthly payment is only 254.10. I cannot,
however, afford the brand new Bugatti Veyron
because the monthly payments on it are
22,471.26.
Im not surprised at this because the Bugatti
Veyron is one of the most expensive cars in the
world, so its very unlikely that most people
cannot afford to have one. However, I was
surprised that I was able to find and could
finance a Jaguar for less than 300 a month, even
if it is a 2002 model, since Jaguars are known to
be a bit expensive.
E
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